10 February 2011
Dear members, Kinldy clarify over the following: A private limited company in its articles wants to lock the shares subscribed by the first directors for an infinite period so that the first directors being promoters will not get out their obligation to carry on the business on incorporation by transferring to some other member. Can it do so by drafting the articles in such a manner? Will the article prevail over Companies Act which just restricts the transfer of shares? regards
CAclubindia
